Happy Creek gets permit to expand drilling at Fox tungsten project in BC

Happy Creek Minerals (TSXV: HPY) has received an amended exploration permit for its Fox tungsten project in south-central British Columbia, allowing for more drilling, trenching and trail construction through late 2027. The original permit was issued in 2006, and has been amended several times since.

The new permit, issued by the BC Ministry of Energy, Mines and Low Carbon Innovation will allow Happy Creek to conduct much of its future work using surface access, which the company believes is safer and more cost-effective than using a helicopter at the site, located about 70 km northeast of 100 Mile House. 

It also allows for expanded  exploration, including 505 surface drilling pads, 165 helicopter-portable drill pads, 875 metres of trenching in 35 trenches, 5.1 km of exploration access trails to connect the drilling area with recently built logging roads, 10 km of temporary drill/trench access trail, and a new temporary camp. Drilling could begin by late June 2024.

“The new Fox exploration permit amendment is an important step in value creation and advancement of the project towards eventual mine production,” Happy Creek CEO Michael Cathro said. “Previous drilling at Fox has outlined a very high-grade tungsten resource at shallow depths in the BN-RC-BK trend, with numerous opportunities for expansion between, adjacent to and at depth below the known deposits.”

Tungsten is one of 31 minerals deemed critical in the federal government’s $3.8 billion strategy to accelerate critical minerals development. Although Fox is among the few tungsten projects in Canada, Fireweed Metals‘ (TSXV: FWZ; US-OTC: FWEDF) Mactung project in the Yukon and Northwest Territories reportedly holds one of the world’s largest deposits of the mineral. 

Fox hosts an estimated resource of 582,400 tonnes grading 0.83% tungsten trioxide (WO3) in the indicated category and 565,400 tonnes grading 1.23% WO3 the inferred category, according to a 2018 report.

The goal of the proposed 2023-2027 drilling program is to at least triple the existing tungsten resource, and then proceed to detailed engineering, environmental and feasibility studies, Happy Creek said.

Since initial prospecting discoveries in 2006, the company has drilled a total of 20,751 metres in 188 diamond drill holes on the property, of which 10,995 metres in 144 holes were focused on the BN-RC-BK trend where the current resources are located.

A portion of the proposed exploration work at Fox is within a caribou habitat area and will require an exemption from the Ministry of Water, Land, and Resource Stewardship. According to the company, it has previously received three exemptions allowing for helicopter-supported drilling in this habitat area.

Although no signs of caribou have been encountered on the project, Happy Creek said it’s aware there is potential habitat, and is committed to working collaboratively with First Nations, the provincial government, and other land users to protect the ungulates and their habitat.

“With the recent increase in the tungsten price and recognition that western democracies must develop a stable supply of critical minerals, now is a perfect time to aggressively advance this high-grade project,” Cathro said.

Shares of Happy Creek Minerals were up 8.3% to 6¢ apiece by mid-day in Toronto on Friday, valuing the company at $8.6 million. Its shares traded in a 52-week range of 2¢ and 7¢.